Author

Topic: Arbitrage Strategies (Read 701 times)

full member
Activity: 140
Merit: 100
January 21, 2017, 02:54:16 PM
#14
My general trade is in altcoin, altcoin to Bitcoin, before do the arbitrage trading, you need to calculate how long your coin get confirmation, calculate the fee transaction and see the exchange wallet available to receive deposit or temporary disable, the range of price should be big and see the ticker of the coin should same because currently many new altcoin and sometimes have same ticker.

In my opinion, the biggest problem when arbitrating with bitcoin is the validation time of transactions.
At bitcoinfees.21.co it says how much a fee value should be on average for quick approval of transactions. When we enter the fee value high, are the things immediately approved? Or is there a possibility that the transaction will not be approved even if we enter a higher value for the fee?
full member
Activity: 140
Merit: 100
January 21, 2017, 02:39:33 PM
#13
I consider arbitration a perfect job for bots, if it is well programmed it is possible to have the same execute orders automatically once they pass on a certain "if" (which is going to be what will determine your profit). Just keep money in two exchanges and let it run.

Where can I find bots like this? Need to write bots in private?
Could you give me some information about the business logic of trade boots?
legendary
Activity: 3052
Merit: 1188
January 21, 2017, 02:22:44 PM
#12
Arbitrage is difficult to implement in crypto because of: Confirmation time, you are not actually sure when the transaction will be confirmed and appear in the second exchange, second is the transaction fees, this varies across exchange and can hit deep into once profit if not well managed.
Yes, moving funds across exchanges will be a practical problem any arbitrage trader will be facing.

When Indian markets were showing big gaps in bitcoin price levels, many traders were finding too hard to move fiat out of India to buy back bitcoins.
hero member
Activity: 700
Merit: 500
January 21, 2017, 07:52:34 AM
#11
Finding out gaps in price levels in different exchanges would be the simplest form of arbitrage trading.
Also some people are suggesting to trade series different altcoins and finding out profits through irrational ratios. But I have tried only the first type of arbitrage trading.
I really could not get how to do arbitrage by trading series of altcoins. If you are able to share more information on method, that would be really helpful to understand better. I just checked in google too. But no clear idea yet.

Still, price gap is the key for arbitrage trading, right ? then what will be the significance on trading one altcoin or many ?
Sorry for not explaining there itself. Trade this way : bitcoin->altcoin1->altcoin2->bitcoin.

For this you need to carefully watch the price differences. I have done this only once. At the end of any dump or bump we will be getting this type of arbitrate opportunity. But gaps will be available for short period of time only.
hero member
Activity: 850
Merit: 504
January 20, 2017, 07:59:21 PM
#10
Finding out gaps in price levels in different exchanges would be the simplest form of arbitrage trading.
Also some people are suggesting to trade series different altcoins and finding out profits through irrational ratios. But I have tried only the first type of arbitrage trading.

Arbitrage trading will be easily profitable as it does not require time to wait. But finding out such arbitrage opportunity would be the catch in it.

I agree but before you do arbitrage trading, you have to research first and check some factors that may affect your trading. For example, you have to check if the wallet is OK,the volume to be traded since you might lose on charges and fees.How long will it take to transfer funds? Sometimes,too long waiting time results to losses.
legendary
Activity: 1288
Merit: 1036
January 20, 2017, 03:59:30 PM
#9
Finding out gaps in price levels in different exchanges would be the simplest form of arbitrage trading.
Also some people are suggesting to trade series different altcoins and finding out profits through irrational ratios. But I have tried only the first type of arbitrage trading.
I really could not get how to do arbitrage by trading series of altcoins. If you are able to share more information on method, that would be really helpful to understand better. I just checked in google too. But no clear idea yet.

Still, price gap is the key for arbitrage trading, right ? then what will be the significance on trading one altcoin or many ?
hero member
Activity: 700
Merit: 500
January 20, 2017, 03:47:20 PM
#8
Finding out gaps in price levels in different exchanges would be the simplest form of arbitrage trading.
Also some people are suggesting to trade series different altcoins and finding out profits through irrational ratios. But I have tried only the first type of arbitrage trading.

Arbitrage trading will be easily profitable as it does not require time to wait. But finding out such arbitrage opportunity would be the catch in it.
legendary
Activity: 2940
Merit: 1131
January 20, 2017, 01:45:22 PM
#7
arbitrage trading is competing against all other user who do arbitrage.
So if there are possibilities and if you know good strategies, you should never share them, cause then everyone will do it and you won't get any profit...
sr. member
Activity: 248
Merit: 250
January 20, 2017, 11:50:09 AM
#6
I think about you should consider this factors when come to arbitrage, time (confirmation time), fee, and price (where her will go, i mean up or down). It's not funny when you send a coin  X to exchanger A, but when their confirmation already complete their price go down.

Like Loganota said before, it's perfect job for bot, because they could handle it effectively than human in most cases if the bot well-programmed  Smiley
hero member
Activity: 742
Merit: 500
The revolutionary trading ecosystem
January 20, 2017, 10:58:51 AM
#5
Arbitrage is difficult to implement in crypto because of: Confirmation time, you are not actually sure when the transaction will be confirmed and appear in the second exchange, second is the transaction fees, this varies across exchange and can hit deep into once profit if not well managed.
hero member
Activity: 1778
Merit: 882
January 20, 2017, 10:56:12 AM
#4
I consider arbitration a perfect job for bots, if it is well programmed it is possible to have the same execute orders automatically once they pass on a certain "if" (which is going to be what will determine your profit). Just keep money in two exchanges and let it run.
legendary
Activity: 2814
Merit: 1112
Leading Crypto Sports Betting & Casino Platform
January 20, 2017, 09:52:12 AM
#3
My general trade is in altcoin, altcoin to Bitcoin, before do the arbitrage trading, you need to calculate how long your coin get confirmation, calculate the fee transaction and see the exchange wallet available to receive deposit or temporary disable, the range of price should be big and see the ticker of the coin should same because currently many new altcoin and sometimes have same ticker.
sr. member
Activity: 924
Merit: 260
January 20, 2017, 08:31:45 AM
#2
Arbitrage trading is not only making money from differences of the price of commodity it's deeper than that. For you to succeed in arbitrage trading you most have a commodity or cryptocurrencies and a dollar or your local currency. When you buy bitcoin for example from peeve at  said $900 then transfer the bitcoin to poloniex when dollar to bitcoin is $980 then convert you bitcoin at poloniex to you dollar, you make your $80 including fees. Arbitrage is a technical games and I will advice you to develop or buy a bots that will trade for you.
full member
Activity: 140
Merit: 100
January 20, 2017, 08:05:52 AM
#1
Brief explanation of the concept of arbitrage: Arbitrage is the process of buying and selling any commodity in order to benefit from price differences.

You can share your arbitrage experience under this topic. Do you have any strategy suggestions about arbitrage for newcomers?
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